A Research On Cash Dividend Policy And Actual Controller Of The Listed Chinese Companies

The Cash Dividend Policy(CDP) has been the focus at home and abroad since fiftyyears ago. In the west, it has been greatly developed and improved. While in china,theoretically, it can’t be applied into practice effectively, and due to weak protectionsystem for the investors, ownership structure is relatively centralized, the controlling rightsis relatively complex, the controlling shareholders have chances and motives to embezzlebenefits of list company and minority shareholders.La porta (1999) and other scholars have proved that most list companies haveshareholders, whose duty is to control the company, namely, actual controllers. Theydecide the financial decision-making, production and management. Their controlling waysare comparably complex, which leads to potentials of transferring and appropriate thebenefits. So in this thesis, based on the Agency Theory, the author, from the view of actualcontroller, studies how the CDP of local list companies are influenced by different factors,including the nature of actual controller, the size of controlling power and separation ofcontrol and cash flow rights, and perfect related research on CDP.Under empirical study of samples of3423list companies collected from A stock ofShanghai Stock Exchange and Shenzhen Stock Exchange between2010and2012, theauthor concludes:(1) Economic nature of actual control influences the tendency of payment. The actualcontrollers of state companies are more likely to give cash dividends, comparingwith the ones in non-state companies.(2) The higher scale of controlling power is, higher the cash dividend per share is.Giving Cash dividend is one way to transfer the cash assets of list companies. Sowhen the power is bigger, the tendency of transferring the cash assets is morepossible.(3) The higher the separation of control and cash flow rights are, the less cashdividend is according to findings above, the author proposes suggestions.